Corporate America Is Sitting on $5 Trillion of M&A Firepower

Overview

Aggregate M&A "firepower" - the sum of a company's readily available cash and debt capacity within its credit rating - is currently estimated at $5 to $5.5 trillion for the S&P 500, says strategists at Citi. The total is up markedly from the $3.3 trillion seen at the start of 2017. M&A is already off to a strong start in 2018 despite the return of market volatility. Global year to date announced deal volume is $449 billion, up 21% from the prior year. Nearly half of the volume is from mega-deals (larger than $5 billion). Technology (over $60 billion) and healthcare (over $45 billion) are the most active sectors.